New digital scams increase during peak purchasing
The list of newer scams includes AI-based fraud, where scammers create fake websites for retailers along with phishing emails or deepfake videos to impersonate brands or influencers. Fraudsters can also embed malicious links into QR codes — a method that is “very widespread,” Zelvin said. “If you scan that QR code, there’s actually a URL or a website link, but people don’t look at it because it’s small,” he said.
Other methods include counterfeiting products on the TikTok store and digital pickpocketing, where criminals use contactless payment devices to steal data from phones – something that is becoming increasingly common. Zelvin said cases of digital pickpocketing can occur in places like a mall or on public transportation, where there are a lot of people. “Where it used to be someone stealing your wallet or purse, now it’s stealing what’s on your phone,” he said.
He noted that 2.6% of online transactions in Canada between Thanksgiving and Cyber Monday last year were identified as fraudulent, an annual increase of 51%. He noted that older consumers are disproportionately targeted.
Zelvin said there is a huge increase in people online during peak purchasing periods, and fraudsters are “seizing the opportunity.”
The majority of Canadian consumers still plan to shop during Black Friday and Cyber Monday this year, despite a slight decline in planned participation, according to a report from Boston Consulting Group.
About 77% of Canadian consumers said they plan to purchase deals, a decline of six percentage points from the previous year. On average, the report found that consumers planned to spend $305 on year-end sales events, down from last year, reflecting “cautious but stable sentiment.”
How to avoid scams this season
To avoid falling victim to scams while shopping, Zelvin has listed several measures you can take. This includes not clicking on links in emails or text messages and instead going directly to retailer websites. Verifying links to websites and looking for relevant HTTPS security indicators can help protect consumers.
He also recommends using credit cards instead of debit cards or payment apps, as they generally offer stronger fraud protection. “Credit cards are a good way to pay just because they’re not fast payment systems, wire transfers, gift cards, some of these payment apps and cryptocurrency — that money is gone,” Zelvin said.
Article continues below advertisement
X
recommended
Best cashback card with instant approval
SimplyCash card from American Express
Earn at least 1.5% cashback on all purchases and 3% on US dollar purchases. Redeem rewards whenever you want.
GO TO THE SITE
Interest rates:
21.99% purchase, 21.99% cash deposit, N/A balance transfer
Welcome offer:
Value $100
Earn a 5% cash back bonus on all purchases (up to $2,000 in purchases). That’s on top of your daily cashback earning rates. That’s up to $100 in bonus money back.
recommended
Silver: Best cash back card
CIBC Dividend Visa Infinite Card
Earn 4% cash back on gas and groceries, and save at the pump with exclusive fuel discounts.
GO TO THE SITE
Interest rates:
21.99% purchase, 22.99% cash advance, 22.99% balance transfer
Welcome offer:
Value $250
Join and earn over $400 in value, including an annual membership fee discount for the first year.†
recommended
Bronze: Best Money Back Card
SimplyCash Preferred Card from American Express
Receive at least 2% cash back on all your purchases: one of the highest base rates in Canada.
GO TO THE SITE
Interest rates:
21.99% purchase, 21.99% cash deposit, N/A balance transfer
Welcome offer:
Value $250
Earn a 10% cash back bonus on all purchases during the first 3 months (up to $2,000 in purchases). Plus, you can earn a $50 statement credit when you make a purchase in month 13. This can amount to up to €250 in bonus value in your first 13 months.
He says other practices, such as being skeptical of limited-time offers, can help, in addition to researching unknown sellers. “The work you will do on the front end will be much less than what you would have to do on the back end if you suddenly have a high dollar amount or multiple fraud incidents,” he said.
Overall, Zelvin advises consumers to “take it slow” and not be in a hurry to hand over their financial information. “Really think, be more skeptical. You don’t have to be afraid, you just have to be more critical,” he said.
Receive free financial tips, news and advice from MoneySense in your inbox.
Read more about fraud and scams:
#AIpowered #scams #rise #holiday #shopping #begins #MoneySense